Year-End report January - December 2020

Fourth quarter in brief

• Net sales amounted to 15.8 million SEK (10.6), which means a sales growth of +49 percent.

• Operating profit amounted to 3.1 million SEK (-4.6).

• Profit for the period amounted to 3 million SEK (-3.5).

• Earnings per share amounted to 0.73 SEK (-0.85).

Full year January - December in brief

• Net sales amounted to 48.7 million SEK (45.8), which means a sales growth of +6 percent.

• Operating profit amounted to 0.9 million SEK (4.9).

• Profit for the period amounted to 0.7 million SEK (3.7).

• Earnings per share amounted to 0.11 SEK (0.94).

• The Board of Directors proposes to the AGM that no dividend will be paid due to the 2020 results.

Significant events during the fourth quarter

An in-depth global collaboration agreement has been signed with GE Healthcare and now covers the entire SyntheticMR solution SyMRI NEURO.

The fourth quarter reached the highest quarterly sales in SyntheticMR's history.

SyMRI can now be integrated into Fujifilm's product Synapse.

SyMRI MSK is the new product package for examination of the musculoskeletal system including spine. The process for regulatory approval in the EU and the USA began.

Significant events during the year 2020

An in-depth global collaboration agreement has been signed with GE Healthcare which has already generated a number of orders.  

SyntheticMR has received regulatory approval for SyMRI in Japan, Brazil, Thailand and Saudi Arabia.

SyMRI is compatible with additional scanners from Siemens Healthineers.

Sales of SyMRI increased by approximately 300 percent compared to last year.

An agreement has been signed with Philips Healthcare, USA, to include SyMRI in their product catalog.

Significant events after the fourth quarter

A global license agreement has been signed with United Imaging regarding marketing and sales of SyMRI NEURO.

SyMRI MSK received CE-mark.

CEO comments

A strong finish of the year

I am proud to share that in the fourth quarter, we reached the highest quarterly sales in SyntheticMR's history. Sales of SyMRI increased again compared to the previous quarter and was more than ten times higher than in the same period last year. In addition, sales growth to GE Healthcare was positive. The outcome was better compared with previous quarters and showed growth compared with corresponding Q4 last year. Sales of SyMRI in relation to total revenues increased in line with previous quarters. This strengthens my view that we have now established a more favorable product mix.

Sales during the fourth quarter amounted to SEK 15.8 million (10.6), which is an increase of 49 percent compared with the corresponding period last year. The increase is primarily attributable to an increased number of SyMRI licenses sold, but also increased sales to GE Healthcare of the customized licenses that are marketed as MAGiC. Operating profit amounted to SEK 3.1 million (-4.6) in the fourth quarter, which corresponds to a margin of 20 percent (-43). The increased result is due to higher sales and lower costs due to adaptations of the marketing plan. As in the previous period, all our priority markets contributed to a strong sales growth of SyMRI. We continuously attract customers who implement our solutions into clinical practice.  This further confirms the value of our product offerings. Although our new standard with the sale of time-limited licenses initially impacts cash flow, I am convinced that this is the right strategy. Implementing this model creates the possibility to build a broad customer base for recurring sales.

Successful partner collaboration and development projects

The fact that SyMRI can now be integrated into Fujifilm's product Synapse, is further recognition of the value of our product offerings. As with the collaboration agreement with Sectra, this enables customers to access the results from SyMRI directly within their system for handling medical images and patient information, thus streamlining the clinical workflow. In addition to initiating new partner collaboration, the joint work with existing partners progresses according to plan. We therefore continue to broaden the available market and increase the resources to market and sell SyMRI.

Successful collaboration with our business partners also contributes to our product development projects. One example of this, is the development of our 3D technology-based product, which will provide major benefits to healthcare through an improved basis from the MRI examination.

SyMRI MSK is our new product package for examination of the musculoskeletal system. The process for regulatory approval in the EU and the USA was initiated during the quarter and it is gratifying that the product is already CE marked. Together with SyMRI NEURO, for brain examinations, we now offer improved workflow and objective decision support to more than two thirds of the MR examinations performed in healthcare.

Strengthened for the future

I am delighted to inform that we ended the year strong. Under challenging conditions, we have built a strong momentum in our market which is very valuable as we continue our growth journey. Although the challenging conditions are expected to remain for some time to come, I am pleased with the positive start we have had in 2021. The strategy of investing in our own sales force and establishing a business model with time-limited subscriptions has provided great results. The increased demands for financial control that this entails are handled well. We have exceeded our aggressive plan to develop cooperation with existing and new partners which has led to a number of new business agreements during the year. Existing and new product development projects are successfully implemented. Strengthened by these successes, we continue to implement our growth plans!

Ulrik Harrysson

CEO, SyntheticMR AB (publ)

For further information, please contact Ulrik Harrysson, CEO SyntheticMR AB, +46 70 529 29 87 or Johanna Norén, Interim CFO SyntheticMR AB, +46 70 619 21 00.

SyntheticMR AB develops and markets innovative software solutions for Magnetic Resonance Imaging (MRI). SyntheticMR AB has developed SyMRI®, delivering multiple, adjustable contrast images and quantitative data from a single 6-minute scan. The SyMRI product is available in different packages. SyMRI NEURO delivers multiple contrast images, tissue segmentations and quantitative data on the brain. SyMRI MSK provides multiple contrast images and quantitative data for MSK anatomies. SyMRI NEURO is CE-marked and FDA 510(k) cleared and SyMRI MSK is CE-marked and FDA 510(k) pending. SyMRI is a registered trademark in Europe and the USA. SyntheticMR is listed on the Spotlight Stock Market Exchange in Stockholm, Sweden.

This information is information that SyntheticMR AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on February18^th 2021.